There is no doubt that FinTech and other virtual banking solutions have become an important counter-competition for the banking & financial sector. Thus, it has become imperative for banks to continually evolve and provide exceptional customer experience to users. With the transforming business processes across enterprises, Quick Automation, Auto decision, Data Security, and Instant Scalability are the main areas expected to bring an optimistic shift in the banking, finance and insurance sector.
As a team of tech professionals specialized in blending Software Development and Process Automation for various industries, we have put together 5 reasons why banks should implement automation software and how it can make processes more efficient.
Robotic Process Automation in Banking
Over the last decade, more than 10% of a bank’s operating cost is attributed to compliance costs – approximately $270 billion dollars yearly. Increasing operating costs, compounded by regulatory fines and stringent regulatory standards, slow down procedures and have an impact on customer experience.
The use of robotic process automation shows great value in reducing error, streamlining employee workload, and improving productivity. In basic terms, RPA bots are software applications that are programmed to do certain tasks in order to automate mundane, repetitive tasks in order to free up employees to perform higher-value work. The best thing about them is that RPA covers a wide range of activities.
Wondering how RPA is able to reduce manual work reduce manual efforts, offer better compliance, mitigate risks, and enhance the overall consumer experience for banks all over the world? Read on to find the various opportunities for RPA implementation.
Compliance
As one of the most heavily regulated industries in the world, banking, finance and insurance organizations face a daunting challenge when it comes to performing post-trade compliance checks and computing expected credit loss (ECL) frequently. By robotizing rote and routine tasks, RPA helps address some of the key imperatives of regulatory compliance.
Planning budget reports and keeping an accurate track of information such as income, liabilities, fiscal summaries, and expenses becomes tedious sooner rather than later and often consumes big chunks of employees’ time. RPA software can be trained to read through those lengthy compliance documents before extracting the required information, saving the time taken to perform the task as well as reducing operational costs.
Customer onboarding
Nothing improves a company’s reputation more than positive word-of-mouth about how they treat their clients. However, customer onboarding in banks is a long, drawn-out process; primarily due to several documents requiring manual verification.
On the other hand, RPA systems enable banking app development projects to incorporate bot technology, which will attentively attend to customer inquiries and provide pertinent solutions to work with consumers.
Account payable
In general, invoices still arrive as paper documents and banks have little to no document standardization. Thus, accounts payable remains a notoriously monotonous process. Using RPA frees your employees from these mundane protocols so that their time and talents can be spent working with more important responsibilities, such as personal customer service.
Moreover, even the best employee occasionally keys in the wrong number. Human error can be easily alleviated with the incorporation of RPA systems. Tons of data and processes will be handled accurately and efficiently.
Fraud detection
Even the largest banks in the world are no strangers to fraud and other miscellaneous activities aimed to deteriorate their reputation. As banks manipulate vast amounts of customer data that are highly sensitive, machine learning-based anomaly detection systems, and RPA-enabled fraud detection systems have proven to be effective.
With the implementation of RPA systems, banks and financial institutions can compare the typical patterns of fraud and put a halt to them, preserving the reputation of the organization.
According to market studies, 85% of large corporations will have launched RPA by 2022 and about 60% have already done so. If implemented properly, RPA or Robotic Process Automation services can be genuinely transformative for the banking sector by automating manual, repetitive and time-consuming tasks. Before incorporating RPA, contact the right RPA consulting company and figure out which processes can be automated to give your business the most benefits.
